On March 1, 2008, Ginny Tyler established Seltzer Realty. Ginny completed the following transactions during the month of March:

a. Opened a business bank account with a deposit of $30,000 from personal funds.

b. Purchased supplies (pens, file folders, paper, etc.) on account, $2,650.

c. Paid creditor on account, $1,500.

d. Earned sales commissions, receiving cash, $36,750.

e. Paid rent on office and equipment for the month, $5,200.

f. Withdrew cash for personal use, $8,000.

g. Paid automobile expenses (including rental charge) for month, $2,500, and miscellaneous expenses, $1,200.

h. Paid office salaries, $9,250.

i. Determined that the cost of supplies on hand was $900; therefore, the cost of supplies used was $1,750.

Instructions

1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:

2. Prepare an income statement for March, a statement of owner's equity for March, and a balance sheet as of March31.

Transcribed Image Text:

Assets- -Liabilities + Ginny Ginny Accounts Tylr,Tyier, Owner's Equity Office Salaries Autop Misc Sales CashSupplies PayableCapital Drawing Commissions Expense Expense Expense Expense Expense